The Tipping Point – Stablecoin Payments Have Gone Mainstream

Digital Assets Are Changing How Businesses Move Funds Globally 

The stablecoin market has hit a new milestone.  In Q3, stablecoin retail payment volumes have continued to climb and are up 4% to $1.77 trillion. Though the total number of transactions have decreased, the value of each transaction has increased suggesting that stablecoins have demonstrated how to effectively manage high value, cross border fund transfers. 

As more traditional financial institutions, payment companies and businesses across industries continue to adopt stablecoin payments to solve well known pain points, I expect to see this number continue to climb. 

If you’re wondering what’s driving this growth and whether stablecoin payments belong in your payment strategy, you’re asking the right questions. 

Why stablecoin payments are gaining traction now?

The technology has existed for quite some time, but it wasn’t until 2025 that regulator clarity emerged, for stablecoins payments, it was the passing of the United States GENIUS Act that has tipped the scales.

Regulatory clarity is creating confidence

Regulators worldwide have shifted from wait-and-watch mode to rule-making. However, the GENIUS Act in the United States focused specifically on stablecoin payments and established clear guidelines for stablecoin issuers, covering reserve requirements, consumer protections, and reporting transparency within their operational frameworks. The EU’s MiCA regulation – though much broader – provides similar clarity; and staying true to its innovative approach to financial technology, Singapore’s Monetary Authority has taken a forward-looking approach across multiple use cases.

When rules are clear and proportionate, adoption accelerates. Even financial institutions that avoided the space two years ago are now actively adding stablecoin infrastructure to their Core systems.

Technology improvements that solve key challenges

Over the years, blockchain infrastructure has matured significantly. Networks like Ethereum and Solana have improved performance through scaling solutions that reduce congestion and fees. Smart contracts built into these systems create trust and integrity without manual intervention.

The infrastructure now supports real-world payment applications with the speed, reliability and transparency businesses require.

Real use cases deliver measurable value

As stablecoin adoption continues, mainstream use cases that deliver real value are scaling across markets.

• Cross-Border Payments: Businesses that operate internationally are expanding their customer reach by adopting stablecoins.
• Treasury Management: Corporate treasurers, particularly treasuries that work in emerging markets, can move tier 3 currencies to US dollar-denominated assets without relying on SWIFT payments that are more expensive and take days to clear.
• Agentic Commerce: Smart contracts can request and release stablecoin payments automatically when goods or services are verified.
• Supplier Payments: Businesses that regularly send payments to suppliers in emerging markets are now able to complete payments in seconds, eliminating the complexity of managing multiple payout methods with different settlement times.
• Remittances: Workers sending money across borders now have access to faster, cheaper transfers compared to more traditional remittance payment avenues. 

How stablecoin cross-border payments work differently

Traditional cross-border payment systems rely on correspondent banking networks, multiple intermediaries and many still use batch processing. Depending on the country, a payment from one region to another can take one to five business days to settle. Multiple parties touch the transaction. FX fees compound. Transparency is limited.

Stablecoin payments operate on a different model. The underlying technology enables near-instant transfers between digital wallets. Funds move 24/7, 7 days a week, 365 days a year, unrestricted by banking hours or geographic boundaries. Recipients access funds immediately rather than waiting days for settlements to clear.

This doesn’t mean that all cross-border payment friction has been solved just yet,  it is within the “on-ramps” and “off-ramps” where fiat currencies convert to stablecoins and then back to fiat. However, even with these conversion steps, the overall process still beats traditional banking rails on speed and cost.

Emerging markets see immediate benefits

In regions with limited access to established financial infrastructure, or that operate in tier 3, or exotic currencies, stablecoin payments provide access to US dollar-denominated assets without the complexity of opening international bank accounts. And, in markets with currency instability, they can offer a hedge against inflation.

Payment corridors with high volumes of migrant remittances benefit particularly from reduced fees and faster settlement. What used to take days and cost significant percentages in fees can now happen in minutes at a fraction of the cost.

Treasury management applications are expanding

Finance teams are finding stablecoin treasury management solves specific challenges traditional banking can’t address as efficiently or as cost effectively.

Liquidity management across borders

Companies operating in multiple countries need to move funds between markets to manage their cash liquidity. Repatriating exotic currencies through traditional banking rails is slow and expensive. With stablecoin payments, funds transfer instantly and become available immediately.

A more flexible way to settle funds

The ability to settle transactions in both fiat and stablecoins offer several advantages. As more companies adopt stablecoins, many large enterprises are not just settling in stablecoins but are also maintaining stablecoin balances, this gives global corporate treasuries a much faster, cost effective way to tap into a pool of globally accessible funds to cover unexpected capital expenditures. This approach is helping companies respond faster to unpredictable market conditions, manage cash positions more precisely, and reduce the amount of idle capital sitting in various accounts that cost money when transferred across borders and currencies.

Programmable payments

The blockchain that Ethereum launched in 2015 introduced smart contracts to the mainstream market. Smart contracts are self-executing agreements based on logic written directly into the code; this structure provides an inherent programmability to automated and trusted transactions without relying on intermediaries. 

The ultimate building block for agentic commerce, smart contracts can enable automated payments based on predefined conditions. For example, an escrow arrangement can release funds automatically when both parties confirm completion, payments can be requested and received for online services avoiding manual intervention.

Integration challenges remain

Despite the benefits, integrating stablecoin payments into existing systems requires work, and much more attention needs to be paid to the user experience.

Legacy infrastructure wasn’t built for this

Banks and financial institutions operating on core systems that are decades old face significant integration challenges. API-ready environments help, but connecting real-time blockchain rails to batch-processing banking systems takes time. Integration timelines vary dramatically depending on the age and complexity of existing technology stacks.

User experience needs improvement

Unlike traditional fiat currency where users aren’t aware whether they hold a Lloyds pound versus an HSBC pound, stablecoin users are very exposed to the underlying technology. They know precisely what asset they’re holding.

The industry needs to abstract this complexity. Success is when users simply see a balance, regardless of which wallet or underlying network or blockchain. When someone receives a payment, they shouldn’t need to think about whether it travelled via stablecoin, tokenised deposit or traditional banking rails.

Risk factors to consider

Stablecoin payments have made progress, and as more companies and consumers use them, it is important to remember that there are still risks. 

Reserve management and stability

Stablecoins are backed by reserves—typically US Treasuries and cash equivalents. The quality and management of these reserves determines stability. Stablecoins have already experienced de-pegging events such as when Silicon Valley Bank collapsed, freezing assets that were used as reserves for Circle’s USDC issued stablecoin. 

In times of extreme financial stress, multiple levels of redemption could occur simultaneously, challenging liquidity management. Strong reserve management and transparency are essential.

Economic downturn impacts

Stablecoins haven’t experienced a major economic recession. Most are pegged to the US dollar and backed by US Treasuries. How they perform during significant economic instability remains to be seen.

The technology infrastructure can handle volatility. Market confidence and consumer perception  when economies struggle is the real test.

What happens next?

Industry experts point to several developments likely to shape stablecoin adoption over the next two years.

Banks enter the space

Financial institutions that control the majority of global payment flows are building stablecoin strategies. With regulatory clarity improving, particularly in the US, banks are moving from exploration to implementation.

When banks offer customers the ability to hold stablecoin accounts alongside traditional bank accounts, many of the current friction points around acceptance and interoperability get resolved.

Non-USD stablecoins emerge

While 80 to 90% of global trade happens in US dollars, roughly 50% of SWIFT payments are USD-denominated, less than 10% are in British pounds and 20+% in euros.

As commercial use cases scale, particularly in Europe and other regions, non-USD stablecoins will find their market. As more issuers launch in Europe under MiCA, there will be more alternatives to USD stablecoins.

User experience needs improvement

The missing piece isn’t technology or financial infrastructure—it’s clean, simple user experience. The industry needs to deliver stablecoin benefits without exposing users to technical complexity.

When consumers and businesses alike can make purchases, pay suppliers, manage treasury or send cross-border payments without thinking about the underlying rails, adoption will accelerate dramatically.

Building your stablecoin payment strategy

Stablecoin payments represent an additional payment rail, not a replacement for existing options. They solve specific problems particularly well:

• Cross-border transactions where speed matters
• Payments to and from emerging markets with limited banking infrastructure
• Treasury operations requiring faster settlement
• Use cases where 24/7 availability creates value
• Situations where transparency and programmability reduce friction

The technology works. Regulatory frameworks are solidifying. Real use cases are scaling. The question isn’t whether to explore stablecoin payments but how to integrate them alongside your existing payment capabilities.